Aminex Inks LNG Deal with LNGL of Australia

Aminex PLC has signed a Memorandum of Understanding with Liquefied Natural Gas Limited ('LNGL'), an Australian public company, for co-operation in the exploration and development of natural gas in East Africa, onshore and offshore.

LNGL has been formed to deliver natural gas to new international energy markets in a liquefied form (LNG). LNGL plans to achieve this by establishing highly efficient and modest sized (100 to 1,000 tonnes per day) LNG plants with easy access to gas reserves and then delivering the LNG to energy markets which cannot be economically supplied by pipeline or which are too small for the major international LNG suppliers. The LNG supplied will replace and compete on favourable terms with expensive and less environmentally attractive oil-based fuels, using innovative LNG production technology.

Under the Memorandum of Understanding it is intended that Aminex will source, develop and produce gas reserves, either existing or to be discovered, and LNGL will provide the means of liquefication and transport. LNGL will also market the product.

LNGL has already entered into the following outline marketing agreements:

(a) Memorandum of Intent with GMR Energy Ltd (GMR), of India, for the 10 year supply of approximately 700 tonnes per day (tpd) of regasified LNG to GMR's existing 220 megawatt power station at Mangalore, in the State of Karnataka, India

(b) Memorandum of Intent with PPN Power Generating Company Ltd (PPNCo), of India, for the 20 year supply of up to 1,000 tpd of regasified LNG to the existing 330 megawatt PPN power station at Pillai Perumal Nallur, in the State of Tamil Nadu, India (PPN Power Project); and

(c) Memorandum of Intent with Apollo Infrastructure Projects Finance Co Ltd (Apollo), of India, for the 20 year supply of approximately 1,000 tpd of regasified LNG, as fuel for the planned 300 megawatt Unit II power plant at Pillai Perumal Nallur to be developed by Apollo (Apollo also owns 28% of PPNCo).

The Memorandum of Understanding between LNGL and Aminex is intended to be the first stage in a wider co-operation covering not only East Africa but the African continent as a whole and possibly elsewhere.

Commenting on the arrangements agreed, Aminex Chief Executive Brian Hall said:

'Aminex and LNGL have been co-operating on LNG possibilities since late 2003 and we are pleased to have signed this MOU which comes as LNGL prepares for flotation on the Australian Stock Exchange. Aminex will provide the upstream component to LNGL's planned growth and is confident of being able to source, acquire and develop stranded gas (which would otherwise be sub-economic), associated gas produced with oil (currently flared or shut-in) and new undeveloped gas reservoirs.'